Category Archives: Marketing

January 31, 2023 · 1:50 pm

The functionality and usability features of mobile apps

This is an excerpt from one of my latest publications.

_{Suggested citation: Camilleri, M.A., Troise, C. & Kozak, M. (2023). Functionality and usability features of ubiquitous mobile technologies: The acceptance of interactive travel apps. Journal of Hospitality and Tourism Technology, https://doi.org/10.1108/JHTT-12-2021-0345 Available from: https://www.researchgate.net/publication/366633583_Functionality_and_usability_features_of_ubiquitous_mobile_technologies_The_acceptance_of_interactive_travel_apps.}

Prior studies relied on specific theoretical frameworks like the Interactive Technology Adoption Model – ITAM (Camilleri and Kozak, 2022), elaboration likelihood model (ELM), information adoption model (IAM) and/or technology acceptance model (TAM), among others, to better understand which factors are having an impact on the individuals’ engagement with digital media or information technologies.

In this case, this research identifies the factors that are influencing the adoption of travel apps, in the aftermath of COVID-19. It examines the effects of information quality and source credibility (these measures are drawn from IAM framework), as well as of technical functionality, relating to electronic service quality (eSERVQUAL), on the individuals’ perceptions about the usefulness of these mobile technologies and on their intentions to continue using them on a habitual basis (the latter two factors are used in TAM models), to shed light on the consumers’ beliefs about their usability and functionality features.

This study suggests that consumers are valuing the quality of the digital content that is presented to them through these mobile technologies. Apparently, they are perceiving that the sources (who are curating the content) were knowledgeable and proficient in the upkeep and maintenance of their apps. Moreover, they are appreciating their functional attributes including their instrumental utility and appealing designs. Evidently, these factors are influencing their intentions to use the travel apps in the future. They may even lead them to purchase travel and hospitality services. Furthermore, they can have an impact on their social facilitation behaviors like positive publicity (via electronic word of mouth like online reviews, as well as in-person/offline), among other outcomes.

This contribution implies that there is scope for future researchers to incorporate a functionality factor in addition to ITAM, IAM and/or TAM ‘usability’ constructs to investigate the individuals’ dispositions to utilize technological innovations and to adopt their information. It confirms that the functionality features including their ease of use, responsiveness, organized layout and technical capabilities can trigger users to increase their app engagement on a habitual basis.

Practical recommendations

The results from this study reveal that the respondents hold positive perceptions toward interactive travel apps. In the main, they indicate that these mobile technologies feature high quality content, are organized, work well, offer a good selection of products and are easy to use.

This research posits that mobile users appreciate the quality of information that is presented to them through the travel apps, in terms of their completed-ness, accuracy and timeliness of information. Yet, the findings show that there is room for improvement. There is scope for service providers (and for the curators of their travel apps) to increase their credentials on source trustworthiness and expertise among consumers.

The results suggest that information quality had a more significant effect on the respondents’ perceived usefulness of travel apps than source credibility. Moreover, they also suggest that consumers are willing to engage with travel apps as they believe that they offer seamless functionality features, including customization capabilities and fast loading screens. Most probably, the respondents are cognizant that they offer differentiated pricing options on flights, hotels and cars, from various service providers. They may be aware that many travel apps also enable their users to access their itineraries even when they are offline and allow them to keep a track record of their reward points (e.g. of frequent flyer programs) on every booking.

In this day and age, consumers can utilize mobile devices to access asynchronous content in webpages, including detailed information on tourism service providers, transportation services, tours to attractions, the provision of amenities in tourist destinations, frequently answered questions, efficient booking engines with high resolution images and videos, quick loading and navigation, detailed maps, as well as with qualitative reviews and quantitative ratings. Very often they can even be accessed through different languages.

A number of travel apps allow their users to log in with a secure, random password authentication method, to keep a track record of their credit card details and past transactions. Most of them are also sending price alerts as well as push notifications that remind consumers about their past searches. These services are adding value to the electronic service quality as opposed to unsolicited promotional messages, that are not always related to the consumers’ interests.

Generally, customers expect travel and tourism service providers to respond to their online queries in an instantaneous manner. They are increasingly demanding web chat services to resolve queries, as soon as possible, preferably in real time.

Tourism and hospitality service providers are already using augmented reality (AR) and virtual reality (VR) software, to improve their consumers’ online experiences and to emphasize their brand positioning as high-quality service providers. In the foreseeable future, it is very likely that practitioners could avail themselves of Metaverse technologies that could teleport consumers in the cyberspace, to lure them to book their flight, stays, car rentals or tours. Online (and mobile) users may be using electronic personas, called avatars to move them around virtual spaces and to engage with other users, when they are in the Metaverse.

This interactive technology is poised to enhance its users’ immersive experiences, in terms of their sensory inputs, definitions of space and points of access to information, particularly those that work with VR headsets. Hence, travel and hospitality businesses could avail themselves of such interactive technologies to gain a competitive advantage.

You can access this paper in its entirety, via: https://www.researchgate.net/publication/366633583_Functionality_and_usability_features_of_ubiquitous_mobile_technologies_The_acceptance_of_interactive_travel_apps

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Filed under Business, business, chatbots, corporate communication, customer service, digital media, Marketing, online, Small Business, Travel, Web

Tagged as Mobile, Mobile Applications, travel apps

December 8, 2022 · 1:28 am

Factors affecting intentions to use interactive technologies

This is an excerpt from one of our latest academic articles (that was accepted by the Journal of Services Marketing).

Theoretical implications

Previous studies reported that interactive websites ought to be accessible, appealing, convenient, functional, secure and responsive to their users (Crolic et al., 2021; Hoyer et al., 2020; Kabadayi et al., 2020; Klaus and Zaichkowsky, 2020; Rosenmayer et al., 2018; Sheehan et al., 2020; Valtakoski, 2019). Online service providers are expected to deliver a personalized customer service experience and to exceed their consumers’ expectations at all times, to encourage repeat business and loyal behaviors (Li et al., 2017; Tong et al., 2020; Zeithaml et al. 2002).

Many service marketing researchers have investigated the individuals’ perceptions about price comparison sites, interactive websites, ecommerce / online marketplaces, electronic banking, and social media, among other virtual domains (Donthu et al., 2021; Kabadayi et al., 2020; Klaus and Zaichkowsky, 2020; Rosenbaum and Russell-Bennett, 2020; Rosenmayer et al., 2018; Valtakoski, 2019; Zaki, 2019). Very often, they relied on measures drawn from electronic service quality (e-SQ or e-SERVQUAL), electronic retail quality (eTailQ), transaction process-based approaches for capturing service quality (eTransQual), net quality (NETQual), perceived electronic service quality (PeSQ), site quality (SITEQUAL) and website quality (webQual), among others.

Technology adoption researchers often adapted TAM measures, including perceived usefulness and behavioral intentions constructs, among others, or relied on psychological theories like the Theory of Reasoned Action (Fishbein and Ajzen, 195) and the Theory of Planned Behavior (Ajzen, 1991), among others, to explore the individuals’ acceptance and use of different service technologies, in various contexts (Park et al., 2007; Chen and Chang, 2018). Alternatively, they utilized IAM’s theoretical framework to investigate the online users’ perceptions about the usefulness of information or online content. Very often they examined the effects of information usefulness on information adoption (Erkan and Evans, 2016; Liu et al., 2017).

A review of the relevant literature suggests that good quality content (in terms of its understandability, completeness, timeliness and accuracy) as well as the sources’ credibility (with regard to their trustworthiness and expertise) can increase the individuals’ expectations regarding a business and its products or services (Cheung et al., 2008; Li et al., 2017; Liu et al., 2017). ELM researchers suggest that a high level of message elaboration (i.e., argument quality) as well as the peripheral cues like the credibility of the sources and their appealing content, can have a positive impact on the individuals’ attitudes toward the conveyors of information (Allison et al., 2017; Chen and Chang, 2018; Petty et al., 1983), could affect their intentions to (re)visit the businesses’ websites (Salehi-Esfahani et al., 2016), and may even influence their purchase intentions (Chen and Chang, 2018; Erkan and Evans, 2016).

This contribution differentiates itself from previous research as the researchers adapted key measures from ELM/IAM namely ‘information quality’ (Filieri and McLeay, 2014; Salehi-Esfahani et al., 2016; Shu and Scott, 2013; Tseng and Wang, 2016) and ‘source credibility’ (Ayeh, 2015; Leong et al., 2019; Wang and Scheinbaum, 2018) and integrated them with an ‘interactive engagement’ construct (McMillan and Hwang, 2002), to better understand the individuals’ utilitarian motivations to use the service businesses’ interactive websites. The researchers hypothesized that these three constructs were plausible antecedents of TAM’s ‘perceived usefulness’ and ‘intentions to use the technology’. Specifically, this research examines the direct effects of information quality, source credibility and interactive engagement on the individuals’ perceived usefulness of interactive website, as well as their indirect effects on their intentions to continue using these service technologies.

To the best of the researchers’ knowledge, there is no other research in academia that included an interactive engagement construct in addition to ELM/IAM and TAM measures. This contribution addresses this gap in the literature. The engagement construct was used to better understand the respondents’ perceptions about the ease-of-use of interactive websites, to ascertain whether they are captivating their users’ attention by offering a variety of content, and more importantly, to determine whether they consider them as responsive technologies.

Managerial implications

This study sheds light on the travel websites’ interactive capabilities during an unprecedented crisis situation, when businesses received higher volumes of inquiries through different channels (to change bookings, cancel itineraries and/or submit refund requests). At the same time, it identified the most significant factors that were affecting the respondents’ perceptions and motivations to continue using interactive service technologies in the future.

In sum, this research confirmed that the respondents were evaluating the quality of information that is featured in interactive websites. The findings reported they were well acquainted with the websites’ content (e.g. news feeds, product information, differentiated pricing options, images, video clips, and/or web chat facilities). The researchers presumed that the respondents were well aware of the latest developments. During COVID-19, a number of travel websites have eased their terms and conditions relating to cancellations and refund policies (EU, 2020), to accommodate their customers. Online businesses were expected to communicate with their customers and to clarify any changes in their service delivery, in a timely manner.

The contribution clarified that online users were somehow influenced by the asynchronous content that is featured in webpages. Therefore, service businesses ought to publish quality information to satisfy their customers’ expectations. They may invest in service technologies like a frequently answered questions widget in their websites to enhance their online customer services, and to support online users during and after the sales transactions. Service businesses could integrate events’ calendars, maps, multi-lingual accessibility options, online reviews and ratings, high resolution images and/or videos in their interactive websites, to entertain their visitors (Cao and Yang, 2016; Bastida and Huan, 2014).

This research underlines the importance for service providers to consistently engage in concurrent, online conversations with customers and prospects, in real-time (Buhalis and Sinarta 2019; Chattaraman et al., 2019; Rihova et al., 2018; Harrigan et al., 2017). Recently, more researchers are raising awareness on the provision of live chat facilities through interactive websites or via SNSs like WhatsApp or Messenger (Camilleri & Troise, 2022). Services businesses are expected to respond to consumer queries, and to address their concerns, as quickly as possible (McLean and Osei-Frimpong, 2019), in order to minimize complaints.

AI chatbot technologies are increasingly enabling service businesses to handle numerous interactions with online users, when compared to telephone conversations with human customer services representatives (Adam et al., 2021; Hoyer et al., 2020; Luo et al., 2019; McLean and Osei-Frimpong, 2019; Van Pinxteren et al., 2019). The most advanced dialogue systems are equipped with features like omnichannel messaging support, no code deployment, fallback options, as well as sentiment analysis. These service technologies are designed to improve the consumers’ experiences by delivering automated smart responses, in an efficient manner. Hence, online businesses will be in a better position to meet and exceed their customers’ service expectations. Indeed, service businesses can leverage themselves with a responsive website. These interactive technologies enable them to improve their positioning among customers, and to generate positive word-of-mouth publicity.

Limitations and future research avenues

This study has included a perceived interactivity dimension, namely an ‘interactive engagement’ construct within an information adoption model. The findings revealed that the respondents believed that the websites’ engaging content was a significant antecedent of their perceptions about the usefulness of interactive websites. This study also reported that the interactive engagement construct indirectly affected the individuals’ intentions to revisit them again.

In conclusion, the authors recommend that future researchers validate this study’s measures in other contexts, to determine the effects of interactive engagement on information adoption and/or on the acceptance and usage of online technologies. Further research is required to better understand which attributes and features of interactive websites are appreciated by online users. Recent contributions suggest that there are many benefits for service businesses to use conversational chatbots to respond to online customer services. These interactive technologies can offer increased convenience to consumers and prospects (Thomaz et al., 2020), improved operational efficiencies (Pantano and Pizzi, 2020), reduced labor costs (Belanche et al., 2020), as well as time-saving opportunities for customers and service providers (Adam et al., 2021).

Prospective empirical research may consider different constructs from other theoretical frameworks to examine the individuals’ perceptions and/or attitudes toward interactive websites and their service technologies. Academic researchers are increasingly relying on the expectancy theory/expectancy violation theory (Crolic et al., 2021), the human computer interaction theory/human machine communication theory (Wilkinson et al., 2021), the social presence theory (Tsai et al., 2021), and/or the social response theory (Adam et al., 2021), among others, to investigate the customers’ engagement with service technologies.

Notwithstanding, different methodologies and sampling frames could be used to capture and analyze primary data. For instance, inductive studies may investigate the consumers’ in-depth opinions and beliefs on this topic. Interpretative studies may reveal important insights on how to improve the efficacy and/or the perceived usefulness of interactive service technologies.

The full paper is available here: https://www.researchgate.net/publication/366055918_Utilitarian_motivations_to_engage_with_travel_websites_An_interactive_technology_adoption_model

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Tagged as digital, digital media, interactive engagement, interactive websites, marketing, online, Tourism, Travel, travel websites, websites

November 1, 2022 · 12:46 am

Live support by chatbots with artificial intelligence: A future research agenda

This is an excerpt from one of my latest contributions on the use of responsive chatbots by service businesses. The content was adapted for this blogpost.

_{Suggested citation: Camilleri, M.A. & Troise, C. (2022). Live support by chatbots with artificial intelligence: A future research agenda. Service Business, https://doi.org/10.1007/s11628-022-00513-9}

The benefits of using chatbots for online customer services

Frequently, consumers are engaging with chatbot systems without even knowing, as machines (rather than human agents) are responding to online queries (Li et al. 2021; Pantano and Pizzi 2020; Seering et al. 2018; Stoeckli et al. 2020). Whilst 13% of online consumer queries require human intervention (as they may involve complex queries and complaints), more than 87 % of online consumer queries are handled by chatbots (Ngai et al., 2021).

Several studies reported that there are many advantages of using conversational chatbots for customer services. Their functional benefits include increased convenience to customers, enhanced operational efficiencies, reduced labor costs, and time-saving opportunities.

Consumers are increasingly availing themselves of these interactive technologies to retrieve detailed information from their product recommendation systems and/or to request their assistance to help them resolve technical issues. Alternatively, they use them to scrutinize their personal data. Hence, in many cases, customers are willing to share their sensitive information in exchange for a better service.

Although, these interactive technologies are less engaging than human agents, they can possibly elicit more disclosures from consumers. They are in a position to process the consumers’ personal data and to compare it with prior knowledge, without any human instruction. Chatbots can learn in a proactive manner from new sources of information to enrich their database.

Whilst human customer service agents may usually handle complex queries including complaints, service chatbots can improve the handling of routine consumer queries. They are capable of interacting with online users in two-way communications (to a certain extent). Their interactions may result in significant effects on consumer trust, satisfaction, and repurchase intentions, as well as on positive word-of-mouth publicity.

Many researchers reported that consumers are intrigued to communicate with anthropomorphized technologies as they invoke social responses and norms of reciprocity. Such conversational agents are programed with certain cues, features and attributes that are normally associated with humans.

The findings from this review clearly indicate that individuals feel comfortable using chatbots that simulate human interactions, particularly with those that have enhanced anthropomorphic designs. Many authors noted that the more chatbots respond to users in a natural, humanlike way, the easier it is for the business to convert visitors into customers, particularly if they improve their online experiences. This research indicates that there is scope for businesses to use conversational technologies to personalize interactions with online users, to build better relationships with them, to enhance consumer satisfaction levels, to generate leads as well as sales conversions.

The costs of using chatbots for online customer services

Despite the latest advances in the delivery of electronic services, there are still individuals who hold negative perceptions and attitudes towards the use of interactive technologies. Although AI technologies have been specifically created to foster co-creation between the service provider and the customer,

There are a number of challenges (like authenticity issues, cognition challenges, affective issues, functionality issues and integration conflicts) that may result in a failed service interaction and in dissatisfied customers. There are consumers, particularly the older ones, who do not feel comfortable interacting with artificially intelligent technologies like chatbots, or who may not want to comply with their requests, for different reasons. For example, they could be wary about cyber-security issues and/or may simply refuse to engage in conversations with a robot.

A few commentators contended that consumers should be informed when they are interacting with a machine. In many cases, online users may not be aware that they are engaging with elaborate AI systems that use cues such as names, avatars, and typing indicators that are intended to mimic human traits. Many researchers pointed out that consumers may or may not want to be serviced by chatbots.

A number of researchers argued that some chatbots are still not capable of communicative behaviors that are intended to enhance relational outcomes. For the time being, there are chatbot technologies that are not programed to answer to all of their customers’ queries (if they do not recognize the keywords that are used by the customers), or may not be quick enough to deal with multiple questions at the same time. Therefore, the quality of their conversations may be limited. Such automated technologies may not always be in a position to engage in non-linear conversations, especially when they have to go back and forth on a topic with online users.

Theoretical and practical implications

This contribution confirms that recently there is a growing interest among academia as well as by practitioners on research that is focused on the use of chatbots that can improve the businesses’ customer-centric services. It clarifies that various academic researchers have often relied on different theories including on the expectancy theory, or on the expectancy violation theory, the human computer interaction theory/human machine communication theory, the social presence theory, and/or on the social response theory, among others.

Currently, there are limited publications that integrated well-established conceptual bases (like those featured in the literature review), or that presented discursive contributions on this topic. Moreover, there are just a few review articles that capture, scrutinize and interpret the findings from previous theoretical underpinnings, about the use of responsive chatbots in service business settings. Therefore, this systematic review paper addresses this knowledge gap in the academic literature.

It clearly differentiates itself from mainstream research as it scrutinizes and synthesizes the findings from recent, high impact articles on this topic. It clearly identifies the most popular articles from Scopus and Web of Science, and advances a definition about anthropomorphic chatbots, artificial intelligence chatbots (or AI chatbots), conversational chatbot agents (or conversational entities, conversational interfaces, conversational recommender systems or dialogue systems), customer experience with chatbots, chatbot customer service, customer satisfaction with chatbots, customer value (or the customers’ perceived value) of chatbots, and on service robots (robot advisors). It discusses about the different attributes of conversational chatbots and sheds light on the benefits and costs of using interactive technologies to respond to online users’ queries.

In sum, the findings from this research reveal that there is a business case for online service providers to utilize AI chatbots. These conversational technologies could offer technical support to consumers and prospects, on various aspects, in real time, round the clock. Hence, service businesses could be in a position to reduce their labor costs as they would require fewer human agents to respond to their customers. Moreover, the use of interactive chatbot technologies could improve the efficiency and responsiveness of service delivery. Businesses could utilize AI dialogue systems to enhance their customer-centric services and to improve online experiences. These service technologies can reduce the workload of human agents. The latter ones can dedicate their energies to resolve serious matters, including the handling of complaints and time-consuming cases.

On the other hand, this paper also discusses potential pitfalls. Currently, there are consumers who for some reason or another, are not comfortable interacting with automated chatbots. They may be reluctant to engage with advanced anthropomorphic systems that use avatars, even though, at times, they can mimic human communications relatively well. Such individuals may still appreciate a human presence to resolve their service issues. They may perceive that interactive service technologies are emotionless and lack a sense of empathy.

Presently, chatbots can only respond to questions, keywords and phrases that they were programed to answer. Although they are useful in solving basic queries, their interactions with consumers are still limited. Their dialogue systems require periodic maintenance. Unlike human agents they cannot engage in in-depth conversations or deal with multiple queries, particularly if they are expected to go back and forth on a topic.

Most probably, these technical issues will be dealt with over time, as more advanced chatbots will be entering the market in the foreseeable future. It is likely that these AI technologies would possess improved capabilities and will be programmed with up-to-date information, to better serve future customers, to exceed their expectations.

Limitations and future research avenues

This research suggests that this area of study is gaining traction in academic circles, particularly in the last few years. In fact, it clarifies that there were four hundred twenty-one 421 publications on chatbots in business-related journals, up to December 2021. Four hundred fifteen (415) of them were published in the last 5 years.

The systematic analysis that was presented in this research was focused on “chatbot(s)” or “chatterbot(s)”. Other academics may refer to them by using different synonyms like “artificial conversational entity (entities)”, “bot(s)”, “conversational avatar(s)”, “conversational interface agent”, “interactive agent(s)”, “talkbot(s)”, “virtual agent(s)”, and/or “virtual assistant(s)”, among others. Therefore, future researchers may also consider using these keywords when they are other exploring the academic and nonacademic literature on conversational chatbots that are being used for customer-centric services.

Nevertheless, this bibliographic study has identified some of the most popular research areas relating to the use of responsive chatbots in online customer service settings. The findings confirmed that many authors are focusing on the chatbots’ anthropomorphic designs, AI capabilities and on their dialogue systems. This research suggests that there are still knowledge gaps in the academic literature. The following table clearly specifies that there are untapped opportunities for further empirical research in this promising field of study.

The full article is forthcoming. A prepublication version will be available through Researchgate.

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Tagged as AI, antropomorphism, artificial intelligence, call centers, call centres, chatbots, conversational chatbots, customer service, dialogue systems, interactive chatbots, marketing, online customer services, service business, service technologies, technologies

September 22, 2022 · 2:35 am

Interactive engagement through travel and tourism social media groups

This an an excerpt from one of my latest article that was published through Technology in Society (An Elsevier Journal).

^{Suggested Citation: Camilleri, M.A. & Kozak, M. (2022). Interactive engagement through travel and tourism social media groups: A social facilitation theory perspective. Technology in Society, https://doi.org/10.1016/j.techsoc.2022.102098}

This study builds on previous academic knowledge on the acceptance and use of social media groups. It relied on valid constructs that were drawn from the Theory of Reasoned Action (TRA), Theory of Planned Behavior (TPB) and Theory of Acceptance Model (TAM), as the proposed research model comprised “attitudes toward technology” and “behavioral intentions” constructs. However, it integrated them with perceived interactivity constructs, including “real-time conversation” and “engaging” as well as with “content attractiveness” from Electronic Retail Quality (eTailQ).

This empirical investigation clarifies that the content attractiveness of social media posts as well as their engaging content and real-time conversation capabilities, can have significant effects on social facilitation behaviors of individuals, and on their intentions to revisit social media groups. The findings from this study reiterate the importance of continuously creating relevant content that appeals to social media followers.

Previous research posited that online users should keep their followers engaged through rich media ([77]). Other theoretical underpinnings reported that interactive websites, particularly social media and video sharing platforms, can offer great potential to DMOs to promote tourism and hospitality services ([88]). Internet domains can showcase a wide array of high-res images and video clips to lure online users to book their travel itineraries to visit destinations ([90]). The digital media and mobile applications (app) ought to be as functional and responsive as possible ([99]). They should load quickly without delays to reduce the likelihood of dissatisfied visitors, who can easily switch to another website or app ([74]).

In this case, the results suggest that there are very significant effects between the online users’ perceptions about engaging content and their intentional behaviors to check out the social media pages (on a regular basis); and between their perceptions about engaging content and their social facilitation dispositions to communicate about social media groups through online and offline channels, in the presence of others. The respondents are appreciating the attractive content, including images or videos, that are disseminated through the social media groups’ posts. Moreover, the findings indicate that they hold positive perceptions about the co-creation of user generated content. Evidently, the exchange of information as well as the responsiveness between two or more online users was leading them to revisit the social media groups.

This study is consistent with the relevant literature that sought to explore the online users’ perceptions about the websites’ interactivity features ([30], [34]). Other researchers maintained that real-time conversations had a positive effect on the online users’ attitudes toward engaging websites ([84]). In this case, this argumentation holds for social media groups, as well.

This contribution underlines the importance of posting engaging content including appealing images and videos through social media. It clearly indicates that interactive content as well as the social networks’ real-time conversation capabilities can foster positive social facilitation behaviors. Arguably, individuals are interested and intrigued to interact with other online users through popular social media groups in the presence of other members. They are likely to join in online discussions and conversations in prolific social media groups, particularly in those that are regularly disseminating attractive content, and in those that facilitate interactive engagement among their members.

The cocreation of user generated content in social media, blogs and review sites is driven by online audiences. This study confirms that the relevance and attractiveness of social media content can have a positive effect on triggering real-time conversations as well as on social facilitation. This reasoning is consistent with the social facilitation theory ([33],[40],[60],[61]). This research corroborates that while the presence of other individuals can increase the likelihood of social engagement, a passive audience may inhibit them from sharing their comments about the attractiveness of interactive content.

The findings of this research also yield plausible implications to practitioners. The researchers indicate that social media subscribers are attracted by the online content that is being posted by DMOs and travel marketers. Online users and prospective travelers are increasingly browsing through interactive content including images and videos of travel destinations. The social media groups are offering a variety of multimedia content that is appealing to online users. Very often, they allow their followers to engage in two-way communications, as members can comment on posts and may also interact with other online users, in real-time. This study suggests that the research participants are visiting the social media groups as they considered them as helpful for their decision making, prior to booking their travel itineraries. Apparently, they were intrigued to revisit these groups and were likely to communicate about their content with other people through offline and online channels, as it appealed to them and captured their attention.

Therefore, travel marketers ought to focus on publishing quality content. This increases the chances of their engagement. Prospective travelers are attracted by multi-media features including high-res images with zooming effects and video content; that are adapted for mobile technologies, including tablets and smartphone devices. Travel marketers and DMOs ought to curate their social media group(s) with appealing content to raise awareness about their tourism products. It is in their interest to share relevant and attractive material to increase the number of followers and their engagement. More importantly, they are expected to interact with online users, in a timely manner, to turn them into brand advocates and to encourage social facilitation behaviors.

In sum, this empirical research clarifies that the attractiveness of online content of social media groups, including their images and videos of destinations, as well as their interactive and real-time conversation capabilities are affecting their subscribers’ revisit intentions. They are also influencing their social facilitation behaviors – in the presence of others. This study raises awareness on the importance of sharing engaging content and of encouraging interactive discussions among social media subscribers. The researchers contend that content creators can lure individuals to visit and revisit their social media pages/groups to generate leads and conversions. Arguably, the more engagement (e.g. through emojis and shares) and conversations (e.g. comments), the greater the chances of captivating the attention of existing followers and of enticing the curiosity of new ones. For the time being, the social facilitation paradigm is still relatively under-explored in academia, particularly within the travel and tourism marketing literature.

Future researchers are encouraged replicate this study in different contexts. They may adapt the measures that were used in this research, including engaging content, real time conversation and social facilitation constructs, in addition to other popular constructs that are drawn from TRA, TPB and TAM. They may include other constructs in their research models, including those relating to psychological theories that can clarify their motivations to engage with other individuals through such digital channels. Further research could focus on the demographic backgrounds of their respondents to better understand who, why, when and where they are engaging with other users through social media groups. Perhaps, there is scope for other studies to employ different sampling frames and methodologies, including inductive ones, to explore this topic in more depth and breadth.

The full list of references are available in the full article. You can download a prepublication version here: 362888940_Interactive_engagement_through_travel_and_tourism_social_media_groups_A_social_facilitation_theory_perspective

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Filed under digital media, internet technologies, internet technologies and society, Marketing, social media

Tagged as digital media, facebook, marketing, Meta, social media, social media groups

July 31, 2022 · 10:06 am

Crowdfunding small businesses and startups: An appraisal of theoretical insights and future research directions

This is an excerpt from one of my latest contributions on crowdfunding (and crowd investing). Its content was adapted for this blogpost.

_{Suggested citation: Camilleri, M.A. & Bresciani, S. (2022). Crowdfunding small businesses and startups: A systematic review, an appraisal of theoretical insights and future research directions, European Journal of Innovation Management, https://doi.org/10.1108/EJIM-02-2022-0060}

Crowdfunding is an alternative method of raising funds that is independent from financial institutions. Individual entrepreneurs, startups and established businesses can utilize online crowdfunding platforms like Indigogo, SeedInvest and GoFundMe, among others, to access finance for new ventures or existing projects, from a large number of investors, in return for products or equity stakes.

Project initiators would usually specify their financing goals and set time frames with deadlines, for their crowdfunding campaigns. If the pre-set funding goal is not met, they will not be in a position to garner any funds for their project.

The fund-raising campaigns have to appeal to as many investors as possible. Hence, initiators ought to feature engaging content, including texts, images, photos, videos, and the like, to lure investors to support their innovative ideas, startups or business ventures. They launch fundraising campaigns through various crowdfunding platforms, in different markets, to connect with online users, thereby circumventing traditional financial institutions like banks, venture capitalists and business angels.

Therefore, the crowdfunding websites curate the offerings they receive and disintermediate traditional distribution channels by connecting online users directly with project initiators.

More individuals and organizations are turning to crowdfunding sources to raise funds for business ventures, artistic or creative projects and for medical expenses, among other purposes. Alternatively, they use them to donate financial resources to cause-related, socially and environmentally responsible projects.

The crowd-investors would usually put their money in those projects in which they believe will hold lucrative potential. They may be considered as shareholders if they provide capital finance, and contribute to the development and growth of crowdfunded projects.

There are various motivations that could attract individual or group investors to pledge their support to equity crowdfunding campaigns, peer-to-peer (P2P) lending/lending crowdfunding, and to debt-securities crowdfunding, among other crowdfunding products.

Prospective investors might be willing to be involved in the development and success of entrepreneurial projects including startups. They may be seeking a return on investment for their monetary contributions, particularly if they believe that project initiators could deliver exceptional service quality and/or are in a position to develop new technological innovations and cutting-edge products. Hence, they will usually trust and have faith in the investees’ knowledge and capabilities to foster positive change in business and society.

The following sections critically appraise two sides of the same coin. The researchers elaborate on (i) the demand for crowdfunding products, and on (ii) the supply of crowdfunding finance.

The use of crowdfunding platforms to raise capital requirements

Small businesses and startups experience difficulties in raising modest amounts of capital. External threats from the marketing environment including the state of the economy, government regulations, tax laws, labor legislation and fluctuations in interest rates, among other issues, could have devastating effects on such entities.

As a result, they may find themselves in an equity gap, if they cannot raise finance to foster innovation for their business. Their access to equity or debt financing through traditional institutions like banks and/or other financial service providers is usually very limited. Typically, they are required to provide a collateral to obtain finance, even though, young enterprises and startups with promising opportunities for potential investment may usually prefer having a lower debt/equity ratio.

In the past decade, a number of individuals, groups, organizations as well as entrepreneurs and startups resorted to crowdfunding, to finance their ideas, ventures or projects. The most popular crowdfunding products include donation-based crowdfunding, rewards-based crowdfunding, equity crowdfunding, peer-to-peer (P2P) lending/lending crowdfunding, and debt-securities crowdfunding, among others.

⚫The peer-to-peer lending is very similar to traditional borrowing from a bank as crowd investors lend money to a company with the understanding that they will be repaid with interest.

⚫Equity crowdfunding projects may usually involve the sale of a stake of a business to a number of investors. This type of crowdfunding is very similar to venture capital finance.

⚫Investors may be drawn to rewards-based crowdfunding to receive non-financial rewards, such as goods or services, in exchange of their contributions.

⚫Alternatively, individuals may be willing to donate their funds for charitable, humanitarian or philanthropic purposes, without expecting any financial returns

Project initiators of successful crowdfunding campaigns are capable of communicating their business propositions and solutions, as they raise awareness on disruptive innovations among large audiences through digital media.

The diffusion of innovations theory suggests that there are five key elements that could influence the diffusion of a new idea (through crowdfunding platforms), including the innovation itself, adopters/users, communication/media channels, time, as well as social systems. Crowdfunding platforms allow creators to promote their projects to generate interest and to ultimately lure investors. Notwithstanding, project initiators as well as the crowdfunding investors are affected by various communication channels, including by competing organizations and regulatory institutions.

The subjective norms in society can influence the individuals’ intentions to use innovations like crowdfunding platforms. The crowdfunding projects could attract the attention of competitors, who may be quicker to develop technological innovations or substitute products, as they could have access to financial capital, economies of scale and scope, to mimic small businesses and start-ups’ ideas.

Debatably, this argumentation is synonymous with the resource-based view theory (RBV). New businesses like startups, as well as small businesses may usually possess fewer resources including liquidity, than established businesses. They may also have access to limited competences and capabilities. Notwithstanding, they may not be considered as legitimate as their larger counterparts by their stakeholders, including by the government, creditors, venture capitalists and other investors.

However, in the past decade, a number of regulatory institutions have introduced legislation in various contexts (like the U.S.’s Jumpstart Our Business Startups – JOBS Act). These laws and the revisions that followed, were intended to support early-stage companies and startups to raise their financial requirements through crowdfunding avenues.

Crowdfunding allows for the democratization of funding, as it is essentially borderless and not geographically constrained. Businesses, enterprises and startups can use crowdfunding platforms to raise funds for on their projects. They can appeal to larger audiences through the digital media.

Project initiators are encouraged to engage with online investors through crowdfunding platforms, to provide feedback relating to products or services, in order to increase their chances of reaching their financial goals. Ultimately, it is in their interest to disseminate relevant content to project backers for transparency purposes, and to improve their credentials with stakeholders.

Investments in crowd funding products

Generally, crowdfunding links the creators/proponents of projects with potential investors. The latter ones could avail of crowdfunding digital platforms to reduce their search and transaction costs. These online users hope to identify lucrative investment opportunities that could yield them attractive returns. Such investors may be drawn by high-quality, market-oriented (commercial) projects and by their rewards, as opposed to community-oriented, not-for-profit projects with social or environmental purposes, that may be promoted via low minimum prices, to appeal to sponsors.

Project initiators of commercial entities may be wary of providing details of their intellectual properties (particularly during the early stages of their crowdfunding campaigns), as they may be concerned that someone could steal their ideas, innovations and projects. They could (willingly or unwillingly) decide not to disclose material information like historic defaults or hidden costs, even after the investor becomes a member of the crowdfunding platform.

As a result, investors of crowdfunded projects may not always have adequate and sufficient information on the borrowers of finance, as crowdfunding platforms may not exercise thorough due diligence on their users. This argument is related to the reasoning behind the signaling theory. In fact, many researchers relied on this theory to explore the signals that are communicated by project creators to lure investments from crowd funders.

Notwithstanding, the most popular crowdfunding platforms may or may not operate from the same jurisdiction of the crowd-investors. Hence, they are not always offering complete protection according to local legislation and regulations. Thus, they could not guarantee the same level of comprehensive appraisals that are provided by local financial service providers. This contentious issue could lead to problems related to information asymmetry. In some circumstances, the failure to disclose material information to crowd-investors may result in near-fraudulent consequences.

Investors may usually try to find a tradeoff between potential rewards and risks from crowdfunding opportunities. They could be attracted by (higher than normal) potential returns that certain crowd-funding activities claim to offer. Therefore, they ought to be cautious and vigilant on their possible risks of default.

If equity crowdfunded projects fail, investors could not be in a position to pay back capitals and to provide any returns to their investors. Similarly, the investors of P2P crowdfunding/lending may also risk losing their funds through unsecured loans, especially if the borrowers did not require any collateral. The investors of equity financing may encounter certain difficulties, other than default. They can find out that there is no lucrative secondary market for their shares. As a result, they might find themselves liquidating them at a significant loss, or of diluting their stock value.

Conclusions

This contribution discusses about the benefits and costs of using crowdfunding platforms to raise finance, or as plausible investment options. The authors elaborate about various challenges and identify opportunities for project initiators (like small business and startups), as well as for crowd-investors.

Currently, there are just a few articles that are linking this timely topic with key theoretical underpinnings relating to technology adoption and/or innovation management (e.g. Diffusion of Innovations Theory, Technology Acceptance Model (TAM), Theory of Planned Behavior (TPB), Theory of Reasoned Action (TRA) or the Unified Theory of Acceptance and Use of Technology (UTAUT), strategic management (e.g. Decision-making Theory; Goal Attainment Theory or RBV), accounting and financial reporting (E.g. Signaling Theory or Venture Quality Theory), and normative/business ethics research (e.g. Social Capital Theory, Social Responsibility Theory and Stakeholder Theory), among others.

For the time being, there are limited discursive contributions on crowdfunding of small businesses and startups. This research sought to address this gap in the academic literature. It clearly outlines the facilitators and barriers of using crowdfunding platforms for crowd sourcing and/or for crowd investing purposes, to better understand the demand / supply for crowdfunding.

In future, other researchers may explore the crowd sourcing possibilities of different types of businesses including sole proprietorships, partnerships, limited partnerships, limited liability companies (LLCs), nonprofits, and cooperatives (co-ops), among other entities. They may categorize enterprises, according to their staff count. Prospective authors could investigate the financing of micro enterprises, small and medium sized enterprises (SMEs), intermediate-sized enterprises and/or large-sized enterprises. Moreover, they could even distinguish among various start-ups like small business startups, scalable startups, buyable startups and/or off-shoot startups, et cetera.

A pre-publication version of this this research is available here: https://www.researchgate.net/publication/362223573_Crowdfunding_small_businesses_and_startups_A_systematic_review_an_appraisal_of_theoretical_insights_and_future_research_directions

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Tagged as accessing finance, Business, crowd investing, Crowdfunding, crowdsourcing, enterprises, entrepreneurs, entrepreneurship, equity gap, financing entrepreneurship, financing ideas, financing startups, financing ventures, small business, small businesses, SMEs, startups, ventures

November 28, 2021 · 2:40 pm

Why should hospitality businesses care about their stakeholders?

_{The following text was adapted from one of my latest articles that was published in Wiley’s Sustainable Development (Journal).}

^S^{uggested Citation: Camilleri, M.A. (2021). Strategic attributions of corporate social responsibility and environmental management: The business case for doing well by doing. good! Sustainable Development. https://onlinelibrary.wiley.com/doi/full/10.1002/sd.2256}

Introduction

The corporate social responsibility (CSR) notion became popularized during the latter part of 20th the century (Carroll, 2021; 1999; Moon, 2007). At the time, businesses were becoming more concerned on how their activities affected legitimate stakeholders and the development of society at large (Phillips, 2003; Freeman & Reed, 1983). Hence, various authors posited that CSR is a fertile ground for theory development and empirical analysis (McWilliams, Siegel & Wright, 2006).

Without doubt, the clarification of the meaning of CSR is a significant strand in the research agenda (Owen, 2005). CSR has developed as a rather vague concept of moral good or normative behaviors (Frederick, 1986). This construct was described as a relativistic measure of ‘the economic, legal, ethical and discretionary expectations that society had of organizations at a given point of time’ (Carroll, 1979). CSR tackled ‘social problem(s)’ to engender positive ‘economic benefit(s)’ to ensure ‘well paid jobs, and … wealth’ (Drucker, 1984).

CSR has continuously been challenged by those who expected businesses to engage in socially responsible behaviors with stakeholders, to adhere to ethical norms in society, and to protect the natural environment (Camilleri, 2015; Lindgreen & Swaen, 2010; Burke & Logsdon, 1996). Previous research reported that CSR practices can result in improved relationships with different stakeholders (Camilleri, 2017a; Moon, 2007; Sen, Bhattacharya & Korschun, 2006).

Various commentators contended that it is in the businesses’ interest to engage in responsible behaviors to forge closer ties with internal and external stakeholders (Ewan & Freeman, 1993; Freeman, 1984). In addition, many researchers reported that there is a causal relationship between the firms’ stakeholder engagement and their financial performance (Henisz, Dorobantu & Nartey, 2014 Pava & Krausz, 1996). This relationship also holds in the tourism and hospitality industry context (Rhou, Singal & Koh, 2016; Camilleri, 2012; Inoue, & Lee, 2011).

Various hotels and restaurants are increasingly communicating about their responsible activities that are having an effect on their stakeholders, including their employees, patrons, guests, suppliers, local communities, the environment, regulatory authorities and the community at large (Camilleri, 2020a). Like other businesses, tourism and hospitality enterprises are always expected to provide decent employment to locals and migrant workers, health and safety in their workplace environments, adequate compensation and recognition of all employees, ongoing training and development opportunities, work-life balance, and the like.

Various studies suggest that, in normal circumstances, when businesses engage in responsible human resources management (HRM), they will boost their employees’ morale, enhance their job satisfaction and reduce the staff turnover (Asimah, 2018). However, an unprecedented COVID-19 and its preventative measures have surely led to a significant reduction in their business activities.

The pandemic has had a devastating effect on the companies’ social metrics, including on their employees’ conditions of employment, financial remuneration and job security, among other issues (Kramer & Kramer, 2020). It has inevitably led to mass redundancies or resulted in the workers’ reduced wages and salaries. On the other hand, this situation has led to a decrease in the companies’ environmental impacts, such as their greenhouse gas emissions and other unwanted externalities.

Several businesses, including hospitality enterprises are becoming more concerned about their impact on the environment (Kim, Lee & Fairhurst, 2017; Elkington, 1998). In many cases, hotels and restaurants strive to reduce their environmental footprint by offering local, fresh, and sustainable food to their patrons. Very often, they are implementing sustainable models including circular economy systems to use and reuse resources, and to minimize their waste, where possible (Camilleri, 2020b). Alternatively, they are decreasing their electricity and water consumption in their properties, by investing in green technologies and renewable energy sources.

These sustainability initiatives could result in operational efficiencies and cost savings, higher quality, innovation and competitiveness, in the long term. As a matter of fact, many studies confirmed that there is a business case for CSR, as corporations engage in socially responsible and environmentally sound behaviors, to pursue profit-making activities (Porter & Kramer, 2011; 2019; Camilleri, 2012; Carroll & Shabana, 2010; Weber, 2008). Notwithstanding, CSR and sustainable practices can help businesses to improve their reputation, to enhance their image among external stakeholders and could lead to a favorable climate of trust and cooperation with internal stakeholders (Camilleri, 2019a).

In this light, this research builds on previous theoretical underpinnings that are focused on the CSR agenda and on its related stakeholder theory. However, it differentiates itself from other contributions as it clarifies that stakeholder attributions, as well as the corporations’ ethical responsibility, responsible human resources management and environmental responsibility will add value to society and to the businesses themselves.

This contribution addresses a knowledge gap in academia. For the time being, there is no other study that effects of stakeholders’ attributions on the companies’ strategic attributions, as depicted in Figure 1. In sum, this study clarifies that there is scope for businesses to forge strong relationships with different stakeholders. It clearly indicated that their engagement with stakeholders and their responsible behaviors were leading to strategic outcomes for their business and to society at large.

Figure 1. A research model that sheds light on the factors leading to strategic outcomes of corporate responsible behaviors

Implications to academia

This research model suggests that the businesses’ socially and environmentally responsible behaviors are triggered by different stakeholders. The findings evidenced that stakeholder-driven attributions were encouraging tourism and hospitality companies to engage in responsible behaviors, particularly toward their employees. The results confirmed that stakeholders were expecting these businesses to implement environmentally friendly initiatives, like recycling practices, water and energy conservation, et cetera. The findings revealed that there was a significant relationship between stakeholder attributions and the businesses’ strategic attributions to undertake responsible and sustainable initiatives.

This contribution proves that there is scope for tourism and hospitality firms to forge relationships with various stakeholders. By doing so, they will add value to their businesses, to society and the environment. The respondents clearly indicated that CSR initiatives were having an effect on marketplace stakeholders, by retaining customers and attracting new ones, thereby increasing their companies’ bottom lines.

Previous research has yielded mixed findings on the relationships between corporate social performance and their financial performance (Inoue & Lee, 2011; Kang et al., 2010; Orlitzky, Schmidt, & Rynes, 2003; McWilliams and Siegel 2001). Many contributions reported that companies did well by doing good (Camilleri, 2020a; Falck & Heblich, 2007; Porter & Kramer, 2011). The businesses’ laudable activities can help them build a positive brand image and reputation (Rhou et al., 2016). Hence, there is scope for the businesses to communicate about their CSR behaviors to their stakeholders. Their financial performance relies on the stakeholders’ awareness of their social and environmental responsibility (Camilleri, 2019a).

Arguably, the traditional schools of thought relating to CSR, including the stakeholder theory or even the legitimacy theory had primarily focused on the businesses’ stewardship principles and on their ethical or social responsibilities toward stakeholders in society (Carroll, 1999; Evan & Freeman, 1993; Freeman, 1986). In this case, this study is congruent with more recent contributions that are promoting the business case for CSR and environmentally-sound behaviors (e.g. Dmytriyev et al., 2021; Carroll, 2021; Camilleri, 2012; Carroll & Shabana 2010; Falck & Heblich, 2007).

This latter perspective is synonymous with value-based approaches, including ‘The Virtuous Circles’ (Pava & Krausz 1996), ‘The Triple Bottom Line Approach’ (Elkington 1998), ‘The Supply and Demand Theory of the Firm’ (McWilliams & Siegel 2001), ‘the Win-Win Perspective for CSR practices’ (Falck & Heblich, 2007), ‘Creating Shared Value’ (Porter & Kramer 2011), ‘Value in Business’ (Lindgreen et al., 2012), ‘The Stakeholder Approach to Maximizing Business and Social Value’ (Bhattacharya et al., 2012), ‘Value Creation through Social Strategy’ (Husted et al., 2015) and ‘Corporate Responsibility and Sustainability’ (Camilleri, 2018), among others.

In sum, the proponents of these value-based theories sustain that there is a connection between the businesses’ laudable behaviors and their growth prospects. Currently, there are still a few contributions, albeit a few exceptions, that have focused their attention on the effects of stakeholder attributions on CSR and responsible environmental practices in the tourism and hospitality context.

This research confirmed that the CSR initiatives that are directed at internal stakeholders, like human resources, and/or environmentally friendly behaviors that can affect external stakeholders, including local communities are ultimately creating new markets, improving the companies’ profitability and strengthening their competitive positioning. Therefore, today’s businesses are encouraged to engage with a wide array of stakeholders to identify their demands and expectations. This way, they will be in a position to add value to their business, to society and the environment.

Managerial Implications

The strategic attributions of responsible corporate behaviors focus on exploiting opportunities that reconcile differing stakeholder demands. This study demonstrated that tourism and hospitality employers were connecting with multiple stakeholders. The respondents confirmed that they felt that their employers’ CSR and environmentally responsible practices were resulting in shared value opportunities for society and for the businesses themselves, as they led to an increased financial performance, in the long run.

In the past, CSR was associated with corporate philanthropy, contributions-in-kind toward social and environmental causes, environmental protection, employees’ engagement in community works, volunteerism and pro-bono service among other responsible initiatives. However, in this day and age, many companies are increasingly recognizing that there is a business case for CSR. Although, discretionary spending in CSR is usually driven by different stakeholders, businesses are realizing that there are strategic attributions, in addition to stakeholder attributions, to invest in CSR and environmental management practices (Camilleri, 2017a).

This contribution confirmed that stakeholder pressures were having direct and indirect effects on the businesses’ strategic outcomes. This research clearly indicated that both internal and external stakeholders were encouraging the tourism business to invest in environmentally friendly initiatives. This finding is consistent with other theoretical underpinnings (He, He & Xu, 2018; Graci & Dodds, 2008).

Recently, more hotels and restaurants are stepping in with their commitment for sustainability issues as they comply with non-governmental organizations’ regulatory tools such as process and performance-oriented standards relating to environmental protection, corporate governance, and the like (Camilleri, 2015).

Many governments are reinforcing their rules of law and directing businesses to follow their regulations as well as ethical principles of intergovernmental institutions. Yet, certain hospitality enterprises are still not always offering appropriate conditions of employment to their workers (Camilleri, 2021; Asimah, 2018; Janta et al., 2011; Poultson, 2009). The tourism industry is characterized by its seasonality issues and its low entry, insecure jobs.

Several hotels and restaurants would usually offer short-term employment prospects to newcomers to the labor market, including school leavers, individuals with poor qualifications and immigrants, among others (Harkinson et al., 2011). Typically, they recruit employees on a part-time basis and in temporary positions to economize on their wages. Very often, their low-level workers are not affiliated with trade unions. Therefore, they are not covered by collective agreements. As a result, hotel employees may be vulnerable to modern slavery conditions, as they are expected to work for longer than usual, in unsocial hours, during late evenings, night shifts, and in the weekends.

In this case, this research proved that tourism and hospitality employees appreciated their employers’ responsible HRM initiatives including the provision of training and development opportunities, the promotion of equal opportunities when hiring and promoting employees and suitable arrangements for their health and safety. Their employers’ responsible behaviors was having a significant effect on the strategic attributions to their business.

Hence, there is more to CSR than ‘doing well by doing good’. The respondents believed that businesses could increase their profits by engaging in responsible HRM and in ethical behaviors. They indicated that their employer was successful in attracting and retaining customers. This finding suggests that the company they worked for, had high credentials among their employees. The firms’ engagement with different stakeholders can result in an improved reputation and image. They will be in a better position to create economic value for their business if they meet and exceed their stakeholders’ expectations.

In sum, the objectives of this research were threefold. Firstly, the literature review has given an insight into mainstream responsible HRM initiatives, ethical principles and environmentally friendly investments. Secondly, its empirical research has contributed to knowledge by adding a tourism industry perspective in the existing theoretical underpinnings that are focused on strategic attributions and outcomes of corporate responsibility behaviors. Thirdly, it has outlined a model which clearly evidences how different stakeholder demands and expectations are having an effect on the businesses’ responsible activities.

On a lighter note, it suggests that Adam Smith’s ‘invisible hand’ is triggering businesses to create value to society whilst pursuing their own interest. Hence, corporate social and environmental practices can generate a virtuous circle of positive multiplier effects.

Therefore, there is scope for the businesses, including tourism and hospitality enterprises to communicate about their CSR and environmental initiatives through different marketing communications channels via traditional and interactive media. Ultimately, it is in their interest to promote their responsible behaviors through relevant messages that are clearly understood by different stakeholders.

Limitations and future research

This contribution raises awareness about the strategic attributions of CSR in the tourism and hospitality industry sectors. It clarified that CSR behaviors including ethical responsibility, responsible human resources management and environmental responsibility resulted in substantial benefits to a wide array of stakeholders and to the firm itself. Therefore, there is scope for other researchers to replicate this study in different contexts.

Future studies can incorporate other measures relating to the stakeholder theory. Alternatively, they can utilize other measures that may be drawn from the resource-based view theory, legitimacy theory or institutional theory, among others. Perhaps, further research may use qualitative research methods to delve into the individuals’ opinions and beliefs on strategic attributions of CSR and on environmentally-sound investments, including circular economy systems and renewable technologies.

A free-prepublication version of this paper is available (in its entirety) through ResearchGate.

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Tagged as business case for CSR, corporate social responsibility, CSR, Environmental Responsibility, ethical responsibility, hotels, HRM, human resources management, partial least squares, PLS, SEM-pls, stakeholder attributions, stakeholder engagement, Stakeholder Theory, stakeholders, strategic attributions, strategic CSR

October 27, 2021 · 10:46 am

How to reduce food loss (and waste) from the hospitality industry?

_{This is an excerpt from one of my lates}_{t academic contributions.}

Hospitality businesses can implement a number of responsible practices. The very first step for them is to develop ‘sustainable’ menus. The restaurants’ menus can offer a choice of different portion sizes to satisfy the requirements of different customers. They may feature fewer items in their menus to operate their business with a reduced inventory of food products to decrease storage costs, minimize waste and spoilage. It is in the interest of restaurant owner-managers to procure fresh ingredients from local businesses including farmers, bakers, butchers, et cetera, to ensure that they are preparing good food for their valued customers. Local products including organic items like fruit and vegetables, will have a longer shelf life than imported ones.

The hospitality businesses ought to forge close relationships with dependable, local suppliers to implement just-in-time purchasing systems (Camilleri, 2015a; Camilleri, 2017a). There is scope for them to purchase regularly and in smaller quantities to reduce the probabilities of food spoilage and dehydration. They are expected to continuously monitor the expiration dates of their food items and ingredients to minimize waste and to respect relevant hygienic standards. Owner-managers may apply the first expired first out (FEFO) principles in their kitchens, to avoid any stock-outs. Moreover, they can use food tracking devices to identify the types of food waste they are generating.

Their monitoring and control of food waste should be carried out on a day-to-day basis, as it can lead to significant operational efficiencies and cost savings. Practitioners may keep a track record of their waste in a spreadsheet. They can measure the quantity of organic waste that is generated from their premises. They may include details like the dates (and times of events), which ingredients or recipes were wasted, the name of the employee(s) who was (or were) responsible for the waste, et cetera. Furthermore, practitioners can estimate the composition of their organic waste and identify whether it is derived from vegetables, bread/pasta, specific meats, etc. This will allow them to make adjustments in their food menus (if possible).

Such food trackers may also help the hospitality business to detect irresponsible behaviors in their kitchens and to minimize food waste from their properties. It may indicate that certain employees are not engaging in responsible food preparation behaviors. There is scope for hospitality businesses to train their human resources, at all levels, particularly new employees, on circular economy approaches [Camilleri, 2014). This way, they will be in a better position to improve their efficiencies in terms of reducing, reusing and recycling resources, and responsible waste disposal practices (Camilleri, 2019a; Camilleri, 2020). They have to be supported and educated on the best practices to ensure that they are improving the (economic) sustainability of their businesses’ food and beverage operations whilst minimizing their impact on the natural environment (Camilleri, 2015b; Camilleri, 2016a; Camilleri, 2017). Table 1 illustrates the responsible behaviors that can be implemented by hospitality businesses to reduce food loss and the generation of waste from their premises:

This research shed light on a number of laudable circular economy initiatives that were drawn from the hospitality industry. It also made reference to a sustainable enterprise that utilizes a sharing economy platform that links consumers with hospitality service providers. Mobile users can purchase surplus food from hotels, restaurants and cafes at a discount. At the same time, the app enables the businesses to make revenue out of their perishable food and to minimize their environmental footprint by reducing their waste. Moreover, it reported that businesses can benefit from tax deductions and credit systems, in different contexts, if they donate surplus (edible) food to charities and food banks. Alternatively, if the food is contaminated or decayed it may be accumulated and turned it into animal feed, compost or transformed into energy through methanation processes. The case studies indicated that the re-utilization of non-edible leftovers may be monetized if they are used for such secondary purposes.

Key Takeaways

The implementation and execution of the circular economy’s closed loop systems ought to be promoted through different marketing channels. Hotels and restaurants can use marketing communications through different media to raise awareness on how they are capable of generating less waste (Camilleri, 2016b). They should promote sustainable production and consumption behaviors through different media outlets, including traditional and digital channels (Camilleri & Costa, 2018; Camilleri, 2018a; 2018b; 2018c).

The hospitality businesses responsible initiatives can raise their profile among different stakeholders, including customers and suppliers, among others (Camilleri, 2015; 2018d). The customers will probably appreciate the hospitality businesses’ efforts to reduce their impact to the natural environment. Some of their sustainability measures are dependent on the active commitment of hotel clients and restaurant patrons. Therefore, it is very important for them to raise awareness about their waste prevention campaigns and on their environmental achievements so that they may feel part of the responsible initiatives. This way, they become key participants in the reduction of generated waste. Hence, businesses can educate customers about responsible consumption behaviors to help them in their endeavors to curb food loss and the generation of unnecessary waste [Camilleri & Ratten, 2020; Camilleri, 2019b). The food and beverage servers could engage in conversations with their clients to better understand their food requirements.

In a similar vein, this research suggests that the hospitality businesses ought to forge closer relationships with their suppliers including farmers and other retailers, to implement responsible inventory management systems and just-in-time purchasing. Suppliers must continuously be informed and updated on their procurement policies. Their ongoing communications may facilitate collaborative practices that may translate to positive outcomes, including the sourcing of better-quality products with extended lifecycles and longer expiry dates.

This contribution reported various preventative measures and recycling practices that may be taken on board by hospitality practitioners and their stakeholders, to reduce food waste and its detrimental effect on our natural environment and biospheres. There is scope for trade unions and industry associations in tourism and hospitality, to promote the responsible behaviors, among their members.

Notwithstanding, regulatory authorities and their policy makers can encourage hospitality practitioners to invest in environmentally friendly systems to minimize their food loss and waste. They can offer them financial incentives like tax deductions or exemptions when they donate surplus food. Alternatively, governments can support them by providing adequate infrastructures and resources including on-site composting facilities and/or methanization processes that are aimed to minimize the accumulation of food waste that finishes in landfills. Such responsible investments will ultimately result in a sustainable value chain in tourism cities, as they add value to the hospitality businesses, to the environment and to society, at large (Salonen & Camilleri, 2020; Camilleri, 2017b).

Suggested citation: Camilleri, M.A. (2021). Sustainable Production and Consumption of Food. Mise-en-Place Circular Economy Policies and Waste Management Practices in Tourism Cities. Sustainability, 13, 9986. https://doi.org/10.3390/su13179986 (OPEN ACCESS)

References

Camilleri, M.A. (2014). The business case for corporate social responsibility. In Marketing & Public Policy as a Force for Social Change Conference. Proceedings pp. 8-14 (Washington D.C., 4th June), American Marketing Association (AMA), Available online: https://www.researchgate.net/publication/273131156_The_Business_Case_for_Corporate_Social_Responsibility.

Camilleri, M.A. (2015a). Re-conceiving CSR programmes for education. In Corporate Social Responsibility: Academic Insights and Impacts, Vertigans, S. & Idowu, S.O. (Eds), Springer: Cham, Swtizerland, http://www.springer.com/gb/book/9783319350820

Camilleri, M.A. (2015b). Environmental, social and governance disclosures in Europe. Sustainability Accounting, Management and Policy Journal, 6, 2, 224-242. http://www.emeraldinsight.com/doi/abs/10.1108/SAMPJ-10-2014-0065

Camilleri M.A. (2016a). Corporate sustainability and responsibility toward education, Journal of Global Responsibility 7, 1, 56-71, http://www.emeraldinsight.com/doi/abs/10.1108/JGR-08-2015-0015

Camilleri M.A. (2016b). Reconceiving corporate social responsibility for business and educational outcomes. Cogent Business and Management, 3, 1 http://dx.doi.org/10.1080/23311975.2016.1142044

Camilleri, M.A. (2017a) Corporate citizenship and social responsibility policies in the United States of America. Sustainability Accounting, Management and Policy Journal, 8, 1, 77-93. http://www.emeraldinsight.com/doi/abs/10.1108/SAMPJ-05-2016-0023

Camilleri, M.A. (2017b). Corporate sustainability and responsibility: Creating value for business, society and the environment. Asian Journal of Sustainability and Social Responsibility, 2, 1, 59-74. https://ajssr.springeropen.com/articles/10.1186/s41180-017-0016-5

Camilleri, M.A. (2018a). The promotion of responsible tourism management through digital media. Tourism Planning & Development, 15, 6, 653-671. https://www.tandfonline.com/doi/full/10.1080/21568316.2017.1393772

Camilleri, M.A. (2018b). Unlocking corporate social responsibility through digital media. In Communicating Corporate Social Responsibility in the Digital Era. Lindgreen, A., Vanhamme, J., Maon, F. and Watkins, R. (Eds), Routledge: Oxford, United Kingdom, https://www.routledge.com/Communicating-Corporate-Social-Responsibility-in-the-Digital-Era/Lindgreen-Vanhamme-Watkins/p/book/9781472484161

Camilleri, M.A. (2018c) Unleashing corporate social responsibility communication for small businesses in the digital era. In Academy of Management Annual Conference Proceedings: Improving Lives, Chicago, 11 August 2018, Academy of Management. Available online: https://journals.aom.org/doi/10.5465/AMBPP.2018.10467abstract

Camilleri, M.A. (2018d). Theoretical insights on integrated reporting: The inclusion of non-financial capitals in corporate disclosures. Corporate Communications: An International Journal, 23, 4, 567-581. https://doi.org/10.1108/CCIJ-01-2018-0016:

Camilleri, M.A. & Costa, R. A. (2018). The small businesses’ responsible entrepreneurship and their stakeholder engagement through digital media. 13th European Conference on Innovation and Entrepreneurship (ECIE) (11 September). University of Aveiro, Aveiro, Portugal. Available online: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3233528 (accessed on 24 August 2021).

Camilleri, M. A. (2019a). The circular economy’s closed loop and product service systems for sustainable development: A review and appraisal. Sustainable Development, 27(3), 530-536. https://doi.org/10.1002/sd.1909

Camilleri, M.A. (2019b). Measuring the corporate managers’ attitudes towards ISO’s social responsibility standard. Total Quality Management & Business Excellence, 30, 13-14, 1549-1561. https://www.tandfonline.com/doi/full/10.1080/14783363.2017.1413344

Camilleri, M. A. (2020). European environment policy for the circular economy: Implications for business and industry stakeholders. Sustainable Development, 28(6), 1804-1812.https://doi.org/10.1002/SD.2113

Camilleri, M.A. & Ratten, V. (2020). The sustainable development of smart cities through digital innovation. Sustainability, Available online: https://www.mdpi.com/journal/sustainability/special_issues/Smart_Cities_Digital_Innovation (accessed on 24 August 2021).

Salonen A.O. & Camilleri M.A. (2020). Creating Shared Value. In Encyclopedia of Sustainable Management, Idowu S., Schmidpeter R., Capaldi N., Zu L., Del Baldo M. and Abreu R. (eds), Springer, Cham, Switzerland. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3683975

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Filed under Circular Economy, Corporate Social Responsibility, Hospitality, Marketing, tourism

Tagged as Circular Economy, food consumption, food loss, food production, food waste, Hospitality, hotels, restaurants, Sustainability, Sustainable Consumption, sustainable production

September 23, 2021 · 4:53 pm

The students’ perceptions of remote learning through video conferencing!

_{This is an excerpt from a recent article that was published by Springer’s Technology, Knowledge and Learning Journal.}

_{Source: Camilleri, M.A. & Camilleri, A.C. (2021). The Acceptance of Learning Management Systems and Video Conferencing Technologies: Lessons Learned from COVID-19. Technology, Knowledge & Learning.}

The unexpected Coronavirus (COVID-19) pandemic has disrupted the provision of education in various contexts around the globe. Education service providers, including higher education institutions (HEIs) were required to follow their respective governments’ preventative social distancing measures and to increase their hygienic practices, to mitigate the spread of the pandemic. They articulated contingency plans, disseminated information about the virus, trained their employees to work remotely, and organised virtual sessions with students or course participants.

These latest developments have resulted in both challenges and opportunities to students and educators. Course instructors were expected to develop a new modus operandi to deliver their education services, in real time. During the first wave of COVID-19, HEIs were suddenly expected to shift from traditional and blended learning approaches to a fully virtual course delivery.

The shift to online, synchronous classes did not come naturally. COVID-19 has resulted in different problems for course instructors and their students. In many cases, educators were compelled to utilise online learning technologies to continue delivering their courses. In the main, educators have embraced the dynamics of remote learning technologies to continue delivering educational services to students, amid the peaks and troughs of COVID-19 cases.

Subsequently, policy makers have eased their restrictions when they noticed that there were lower contagion rates in their communities. After a few months of lockdown (or partial lock down) conditions, there were a number of HEIs that were allowed to open their doors. They instructed their visitors to wear masks, and to keep socially distant from each other. Most HEIs screened individuals for symptoms as they checked their temperatures and introduced strict hygienic practices like sanitisation facilities in different parts of their campuses.

However, after a year and a half, since the outbreak of COVID-19, some academic members of staff were still relying on the use of remote learning technologies to deliver education services, as they utilised learning management systems (LMS) and video conferencing software to teach their courses. During the pandemic, they became acquainted with online technologies that facilitated asynchronous as well as synchronous learning.

Whilst their asynchronous approaches included text and/or recorded video that were made available through LMS (like Moodle), in many cases, they also utilised video conferencing platforms including Microsoft Teams, Google Meet, Zoom, D2L, Webex, Adobe Connect, Skype for Business, Big Blue Button and EduMeet, among others, to interact with students in real time.

In this light, our research investigated the facilitating conditions that can foster the students’ acceptance and usage of remote learning technologies including LMS and video conferencing programs. We examined the participants’ motivations to use them to continue pursuing their educational programs from home, during COVID-19. Specifically, our study investigated students’ perceptions about the usefulness of remote learning, their interactive capabilities, their attitudes toward their utilisation, the facilitating conditions as well as their intentions to continue using them.

Our targeted respondents were registered students who followed full-time and part-time courses at the University of Malta in Malta. We used a structural equation modeling partial least squares (SEM-PLS) analytical approach to examine the responses of 501 students who voluntarily participated in our research.

The findings clearly indicated that the higher education students perceived the usefulness of remote learning technologies during COVID-19 and valued their interactive attributes. They confirmed that the respondents held positive perceptions toward their universities’ facilitating conditions (like ongoing support, as well as training and development opportunities).

The empirical results reported that the HEI’s facilitating conditions had a significant effect on the students’ interactive engagement with online learning resources and on their attitudes towards these technologies.

The confirmatory composite analysis reported that there were positive and highly significant effects that predicted the students’ intentions to continue using remote learning technologies. Evidently, educators have provided them with the necessary resources, knowledge and technical support to avail themselves of remote learning technologies.

The respondents indicated that they accessed their course instructors’ online resources and regularly interacted with them through live conferencing facilities. The findings from SEM-PLS confirmed that the perceived usefulness and perceived interactivity with online technologies had a positive effect on their attitudes toward remote learning.

In sum, this contribution has differentiated itself from other studies as it investigated the students’ perceptions and attitudes on the use of asynchronous as well as synchronous learning technologies in higher education. It implies that the integration of these technologies ought to be accelerated in the foreseeable future as they may become the norm, in a post COVID-19 era. Therefore, HEIs ought to continue investing in online learning infrastructures, resources and facilitating conditions, for the benefit of their students and faculty employees.

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Filed under Digital Learning Resources, digital media, Education, education technology, Marketing, mobile learning, Remote Learning

Tagged as COVID-19, Covid-19 research, elearning, mobile learning, online learning, Remote Learning, SEM-pls, Structural Equations Modeling

July 27, 2021 · 11:19 am

The service quality and performance of higher education institutions

This is an excerpt from one of my latest articles that was published in the International Journal of Quality and Service Sciences.

Higher education service delivery and the students’ learning experiences

Higher education institutions (HEIs) are expected to adapt to ongoing developments in their macro and microenvironments as they are usually operating with budget constraints (Camilleri, 2019). They compete for funding and for student numbers in a global marketplace (OECD, 2019; Hägg and Schölin, 2018; Tian and Martin, 2014). Very often, they are using the corporate language as they formulate marketing plans, set objectives to control their resources, and are becoming customer-driven (Lynch, 2015; Sojkin, Bartkowiak and Skuza, 2012; Naidoo, Shankar and Veer, 2011; Ng and Forbes, 2009). The logic behind these managerial reforms is to improve the HEIs’ service quality and performance (Rutter, Roper and Lettice, 2016; Mourad, Ennew and Kortam, 2011; Abdullah. 2006a).

The challenge for HEI leaders is to identify their students’ and other stakeholders’ expectations on service quality. The consumers’ perceived service quality is defined as the degree and direction of discrepancy between their perceptions and expectations (Quinn et al., 2009; Parasuraman et al., 1988). Quality is distinguished from satisfaction, in that, the latter is assumed to involve specific transactions. As part of the conceptualization, expectations are viewed as desires or wants of consumers (Zeithaml, Berry and Parasuraman, 1993).

Parasuraman et al. (1988) measured the individuals’ perceptions and expectations about service quality. Their SERVQUAL scales assessed service quality in terms of tangibility, reliability, responsiveness, assurance and empathy services (Brochado, 2009; Tan and Kek, 2004). In a similar vein, other authors noted that service quality comprises three significant dimensions; service processes, interpersonal factors, and physical evidence (Tsinidou, Gerogiannis and Fitsilis, 2010; Angell, Heffernan and Megicks, 2008; Oldfield and Baron, 2000). Notwithstanding, the HEIs’ physical evidence (that is associated with their tangible aspect) can also influence the students’ satisfaction levels (Wilkins and Balakrishnan, 2013; Ford, Joseph and Joseph, 1999).

The students are considered as the primary customers of tertiary education institutions (Quinn et al., 2009; Lomas, 2007; Snipes et al., 2005). Their expectations on the HEIs’ service performance plays a key role on their quality perceptions (Raaper, 2009; Brochado, 2009; Abdullah, 2006b; Hill, 1995). Students spend a considerable amount of time on campus, in lecture rooms, libraries, IT labs, canteens, sport grounds, et cetera (Hill, 1995). They will probably use the HEIs’ service facilities, technologies and equipment.

Ozkan and Kozeler (2009) maintained that the learners’ perceived satisfaction with higher education technologies is dependent on the quality of the instructors, the quality of the systems, information (content) quality and supportive issues. Hence, HEI leaders have to ensure that the tangible aspects of their higher educational services ought to be in good working order for the benefit of their users.

The provision of higher education services involves “person‐to‐person” interactions (Clemes et al., 2008; Solomon et al., 1985). The frontline employees (like faculty employees) can influence the degree of their consumers’ (or students’) satisfaction and experiences (Raaper, 2019; Ng and Forbes, 2009; Ford et al., 1999; Bitner et al., 1990). Both academic and administrative employees’ ability and willingness to deliver appropriate service quality will determine the students’ overall satisfaction with their higher education services (Tsinidou et al., 2010).

Oldfield and Baron (2000) contended that students rely on the non‐academic employees, including administrators and support staff, over whom the course management teams have no direct control. They pointed out that the students may not be interested in the HEIs’ organizational hierarchies, as they expect their employees to work in tandem. Therefore, the administrative employees should also communicate and liaise with the academic members of staff, to ensure that the students receive an appropriate quality of service. The course instructors should be evaluated in terms of their technical and interpersonal skills, consistency of performance and appearance (Camilleri, 2021; Angell et al., 2008).

Students want their lecturers to be knowledgeable, enthusiastic, approachable, and friendly (Voss, Gruber and Szmigin, 2007). The HEI leaders should be aware that their employees’ interactions with their students will have an effect on their satisfaction during their learning journey (Quinn et al., 2009). The members of staff represent their employer whenever they engage with students and other stakeholders (Voss et al., 2007). Therefore, HEI leaders ought to foster an organizational culture that represents the institutions’ shared values, beliefs, assumptions, attitudes and norms of behavior that bind employees to deliver appropriate service quality and the desired performance outcomes (Kollenscher, Popper and Ronen, 2018; Pedro, Mendes and Lourenço, 2018; Trivellas and Dargenidou, 2009; O’Neill and Palmer, 2004).

Measuring higher education service performance

The employees’ performance is usually evaluated against their HEIs’ priorities, commitments, and aims; by using relevant international benchmarks and targets (OECD, 2019; Brochado, 2009; Lo, 2009 O’Neill and Palmer, 2004). Generally, the academics are usually appraised on their research impact, teaching activities and outreach (Camilleri, 2021).

Their academic services, including their teaching, administrative support as well as the research and development (R&D) duties, all serve as performance indicators that can contribute to build the reputation and standing of their employer (Geuna and Martin, 2003). The university leaders should keep a track record about the age and distribution of their faculty members; diversity of students and staff, in terms of gender, ethnicity, race, et cetera.

In addition, their faculties could examine discipline-specific rankings; and determine the expenditures per academic member of staff, among other responsibilities (Camilleri, 2019). The quantitative metrics concerning the students’ performance may include their enrolment ratios, graduate rates, student drop-out rates, the students’ continuation of studies at the next academic level, and the employability index of graduates, among others (QS Rankin 2019; THE, 2019).

Moreover, qualitative indicators can also provide insightful data to HEIs on the students’ opinions and perceptions about their learning environment. HEIs could evaluate the students’ satisfaction with teaching; satisfaction with research opportunities and training; perceptions of international and public engagement opportunities; ease of taking courses across boundaries; and may also determine whether there are administrative and/or bureaucratic barriers for them (Kivisto, Pekkola and Lyytinen, 2017).

HEIs should regularly analyze their service quality and performance through financial and non-financial indicators (Camilleri, 2021; Lagrosen, Seyyed-Hashemi and Leitner, 2004). A relevant review of the literature suggests that the institutions ought to be evaluated on their organization; corporate governance, autonomy; accountability; system structures; resourcing and funding; consultation processes; digitalization; admission processes; student-centered education, internationalization; regional development; continuing education; lifelong learning qualifications; research, innovation and technology transfer; high impact publications, stakeholder engagement with business and industry; labour market relevance; collaborations with other HEIs and researcher centers; and quality assurance among other issues (OECD, 2019; EU, 2017; Lagrosen et al., 2004; O’Neill and Palmer, 2004; Cheng and Tam, 1997; Owlia and Aspinwall, 1996).

The Organization for Economic Cooperation and Development (OECD) regularly reviews the current state of higher education systems in its member countries. Its benchmarking exercises are intended to scrutinize the performance of universities and colleges. OECD (2019) has used 24 domains to evaluate different aspects of the HEIs’ organizational performance. The following table features a list of 45 performance indicators that can be used to assess the HEIs’ resources and their key functions

qual HEI

There are different methodologies and key performance indicators that can be used to evaluate the service quality in higher education. The above metrics are used to compare the OECD countries’ HEI performance in terms of allocated resources, the provision of student-centered education, research and engagement. However, this scorecard and the quality of its outputs ought to be validated in different contexts.

There are other performance variables, including the pedagogical knowledge and experience of the course instructors, the HEIs’ working conditions, teaching methodologies and practices, the usage of education technologies, engagement with business and industry, et cetera, that were not featured in this scorecard. Perhaps, in reality it may prove difficult to measure qualitative issues. For instance, while HEIs may be willing to demonstrate their engagement with different stakeholders, currently, there are no mechanisms in place to monitor, report and assess their outreach activities.

The HEIs’ responsibility is to address the skill gaps and mismatches in their labor market (EU, 2017). The governments’ policy makers together with the HEI leaders need to address sector-specific skill shortages. Specifically, EU (2017) proposed that HEIs ought to: (i) better understand what skills are required by the prospective employers (ii) communicate to society, practitioners and policy-makers about what they are already doing to prepare graduates for the labor market; (iii) prepare students and influence their choice of study; and (iv) implement effective learning programs that rely on blended learning methodologies including traditional and digital learning approach.

Suggested citation: Camilleri, M.A. (2021). Evaluating service quality and performance of higher education institutions: A systematic review and a post COVID-19 outlook. International Journal of Quality and Service Sciences, 13(2), 268-281. DOI: 10.1108/IJQSS-03-2020-0034

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Filed under Higher Education, Marketing, performance management

Tagged as HEIs, Higher Education, higher education institutions, service performance, service quality, Service sciences

June 23, 2021 · 6:15 pm

Customers are always right, even after their shopping cart checkout!

The outbreak of COVID-19 and its preventative measures have led several businesses and consumers to change their shopping behaviors. Many individuals have inevitably reduced their human-to-human interactions in physical service environments and were increasingly relying on the adoption of digital media and mobile devices, including smart phones and tablets for their shopping requirements.

Consumers as well as businesses are benefiting of faster connections as the loading speeds of these devices is one of the critical determining factors as to whether visitors may (or may not) be willing to browse through e-commerce websites or apps, to proceed to check out, and to lay down their credit cards.

Advances in technological capabilities have improved the consumers’ online shopping experiences. As a result, more businesses are benefiting from the expertise of online marketplaces to deliver personalized services to their customers. For instance, Amazon provides product recommendations to its visitors, that are based on their previous searches.

Ecommerce giants utilize machine learning technologies to segment consumers by geographical location, age and gender, buying habits, total expenditure, and more. They capture data from online users, including their browsing and purchase histories. They distinguish between profitable, loyal customers, price-sensitive customers, and identify those who are likely to abandon their shopping carts.

Prospective consumers will usually compare a wide variety of products and their corresponding prices, in different virtual marketplaces, before making their purchase decision. They will probably check out the consumer reviews to confirm the reputation and trustworthiness of online merchants. At times, they will not be in a position to confirm the legitimacy of certain websites and to determine if it is safe to disclose their payment details to anonymous vendors.

A few websites may require consumers to join their mailing list. They may expect them to provide their email addresses, that they may share with third parties. As a result, consumers could receive unwanted ads and scams in their inboxes. Moreover, they may experience phishing and spoofing. Therefore, shopping web pages should use SSL certificates to prove that their transactions are safe and secure.

Furthermore, e-commerce websites ought to feature accurate, timely and reliable content. They have to be as transparent as possible with online users. They should clarify their terms and conditions as well as their refund policies. The smallest thing that’s out of place in their e-commerce pages could rapidly erode the customers’ trust in their products and services.

Online users cannot inspect (or try) their chosen products until they receive them. They may experience delays in the delivery of their shopping items, particularly, if they get lost, detoured or delivered in the wrong address. Once they receive the product they ordered, they may decide to return it, if for some reason they are not satisfied by its quality. In this case, they could (or could not) be reimbursed for incurring shipping and packaging costs. Shopping websites are increasingly offering synchronous communications facilities to enhance their personalized services through web chat facilities that enable instantaneous conversations with online users.

This development has significantly improved the consumers’ perceptions about the service quality of e-commerce websites and their satisfaction levels. They also increased the chances of their repeat purchases. In sum, this contribution suggests that online businesses and marketplaces should identify the critical success factors that are differentiating e-commerce websites from one another. The most popular online marketplaces are capable of attracting repeat consumers through a consistent delivery of personalized customer service, thereby increasing their sales potential and growth prospects

This research confirmed that the consumers’ satisfaction with e-commerce websites has a significant effect on their loyalty as well as on their electronic word-of-mouth publicity. This is an important finding, considering that there are several shopping websites and online marketplaces where consumers can find identical or alternative products. In this case, the respondents suggested that e-commerce websites delivered good value to them and that they triggered their loyal behaviors. The research participants indicated that they were satisfied with the quality of the shopping websites and with their electronic services.

This study showed that customers were intrigued to share their positive or negative experiences with products and/or services with other online users. Hence, they were willing to cocreate online content for the benefit of prospective consumers. Many customers are increasingly voicing their opinions and recommendations through qualitative reviews and/or quantitative ratings to support other individuals in their purchase decisions. They may either encourage or discourage others from shopping from a particular vendor and/or website.

This research confirmed that the online users’ satisfaction levels with the service quality of the e-commerce website relied on different factors, including website attractiveness, functionality and security as well as on consumer order fulfillment, during and after a purchase. The websites’ designs and layouts can capture their visitors’ attention and may possibly improve the online consumers’ experiences during their purchase transactions.

The e-commerce websites’ appearance and their functionality may entice online users to continue browsing through their content and to revisit them again, in the future. Online users would be satisfied if the e-commerce websites are informative, useful and easy to use. They utilize shopping websites to access relevant content on the attributes and features of products, including consumer reviews. Therefore, the technical functionality of these websites’ inventory systems should feature accurate and timely information on the availability of items as well as on their prices and costs of delivery.

In this day and age, shopping websites should provide approximate shipping dates, estimated delivery times, et cetera. Online sellers should also establish clear information on their returning policies. They may direct online users and past consumers to frequently answered questions, and/or to chatbots. Alternatively, they may offer webchat facilities to engage with their valued customers, in real time.

Key Takeaway

Although there are many studies that have explored the service quality of e-commerce websites during a purchase transaction, only a few of them have focused on consumer fulfillment (and on their after-sales services). The findings from this research reported that timely deliveries, and the provision of personalized services have a highly significant effect on consumer satisfaction and loyalty.

Service providers ought to meet and exceed their customers’ expectations in different stages of their order fulfilment in online retailing contexts. They ought to deliver the ordered items as expeditiously as possible, to improve their service quality. Online retailers should respond to consumer enquiries, in a timely manner. This way, they can increase consumer satisfaction, minimize complaints and reduce the likelihood of negative criticism (and damaging e-WOM) in review websites and social media.

________________________________________________

This is an excerpt of my latest academic article that was published in the Journal of Strategy and Management. It is available here: https://www.emerald.com/insight/content/doi/10.1108/JSMA-02-2021-0045/full/html

A prepublication version is available through ResearchGate.

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Filed under Business, digital media, ecommerce, Marketing, online, Small Business, Web

Tagged as after sales service, after-sales service, consumer loyalty, consumer order fulfillment, consumer satisfaction, ecommerce, online sales, order fulfillment, service quality, SERVQUAL, word of mouth

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Customers are always right, even after their shopping cart checkout!

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